S T A T E O F N E W Y O R K
________________________________________________________________________
6607
2025-2026 Regular Sessions
I N A S S E M B L Y
March 6, 2025
___________
Introduced by M. of A. KIM -- read once and referred to the Committee on
Ways and Means
AN ACT to amend subpart B of part PP of chapter 59 of the laws of 2021
amending the tax law and the state finance law relating to establish-
ing the New York city musical and theatrical production tax credit and
establishing the New York state council on the arts cultural program
fund, in relation to the effectiveness thereof; to amend the tax law,
in relation to the New York city musical and theatrical production tax
credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 6 of subpart B of part PP of chapter 59 of the
laws of 2021 amending the tax law and the state finance law relating to
establishing the New York city musical and theatrical production tax
credit and establishing the New York state council on the arts cultural
program fund, as amended by section 1 of subpart E of part I of chapter
59 of the laws of 2023, is amended to read as follows:
§ 6. This act shall take effect immediately; provided however, that
sections one, two, three and four of this act shall apply to taxable
years beginning on or after January 1, 2021, and before January 1,
[2026] 2031 and shall expire and be deemed repealed January 1, [2026]
2031; provided further, however that the obligations under paragraph 3
of subdivision (g) of section 24-c of the tax law, as added by section
one of this act, shall remain in effect until December 31, [2027] 2032.
§ 2. Paragraph 2 of subdivision (a) of section 24-c of the tax law, as
amended by section 2 of subpart E of part I of chapter 59 of the laws of
2023, is amended to read as follows:
(2) The amount of the credit shall be the product (or pro rata share
of the product, in the case of a member of a partnership) of twenty-five
percent and the sum of the qualified production expenditures paid for
during the qualified New York city musical and theatrical production's
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09235-02-5
A. 6607 2
credit period. Provided however that the amount of the credit cannot
exceed three hundred fifty thousand dollars per qualified New York city
musical and theatrical production in a level two qualified New York city
production facility and three million dollars per qualified New York
city musical and theatrical production in a level one qualified New York
city production facility. In no event shall a qualified New York city
musical and theatrical production be eligible for more than one credit
under this program. PROVIDED HOWEVER, IF A PRODUCTION LOCATED IN A
LEVEL TWO PRODUCTION FACILITY IS APPROVED FOR A CREDIT UNDER THIS
SECTION AND SUCH PRODUCTION MOVES TO A LEVEL ONE PRODUCTION FACILITY,
ANY CREDIT AMOUNT PREVIOUSLY APPROVED FOR THE LEVEL TWO PRODUCTION SHALL
REDUCE ANY APPROVED LEVEL ONE CREDIT AMOUNT BY SUCH AMOUNT. A
PRODUCTION SHALL NOT HAVE TO WITHDRAW A PREVIOUS CREDIT APPLICATION IF
SUCH PRODUCTION MOVES FROM A LEVEL TWO PRODUCTION FACILITY TO A LEVEL
ONE PRODUCTION FACILITY.
§ 3. Subparagraph (i) of paragraph 3 of subdivision (b) of section
24-c of the tax law, as amended by section 2-a of subpart E of part I of
chapter 59 of the laws of 2023, is amended to read as follows:
(i) "Level one qualified New York city production facility" means a
facility located within the (A) borough of Manhattan, bounded by and
including forty-first street and [fifty-fourth] FIFTY-SEVENTH street and
between sixth avenue and [ninth] TENTH avenue, AND BOUNDED BY AND
INCLUDING SIXTY-SECOND STREET AND SIXTY-FIFTH STREET BETWEEN COLUMBUS
AVENUE AND AMSTERDAM AVENUE in which live theatrical productions are or
are intended to be primarily presented, (B) that contains at least one
stage, a seating capacity of five hundred or more seats, and dressing
rooms, storage areas, and other ancillary amenities necessary for the
qualified musical and theatrical production, and (C) for which receipts
attributable to live theatrical productions constitute seventy-five
percent or more of gross receipts of the facility.
§ 4. Subparagraph (i) of paragraph 5 of subdivision (b) of section
24-c of the tax law, as amended by section 3 of subpart E of part I of
chapter 59 of the laws of 2023, is amended to read as follows:
(i) "The credit period of a qualified New York city musical and theat-
rical production company" is the period starting on the production start
date and ending on the earlier of the date the qualified musical and
theatrical production has expended sufficient qualified production
expenditures to reach its credit cap, September thirtieth, two thousand
[twenty-five] THIRTY or the date the qualified musical and theatrical
production closes.
§ 5. Subdivision (c) of section 24-c of the tax law, as amended by
section 4 of subpart E of part I of chapter 59 of the laws of 2023, is
amended to read as follows:
(c) The credit shall be allowed for the taxable year beginning on or
after January first, two thousand twenty-one but before January first,
two thousand [twenty-six] THIRTY-ONE. A qualified New York city musical
and theatrical production company shall claim the credit in the year in
which its credit period ends.
§ 6. Paragraphs 1 and 2 of subdivision (f) of section 24-c of the tax
law, as amended by section 5 of subpart E of part I of chapter 59 of the
laws of 2023, are amended to read as follows:
(1) The aggregate amount of tax credits allowed under this section,
subdivision fifty-seven of section two hundred ten-B and subsection
(mmm) of section six hundred six of this chapter shall be [three] EIGHT
hundred million dollars. Such aggregate amount of credits shall be allo-
cated by the department of economic development among taxpayers based on
A. 6607 3
the date of first performance of the qualified musical and theatrical
production.
(2) The commissioner of economic development, after consulting with
the commissioner, shall promulgate regulations to establish procedures
for the allocation of tax credits as required by this section. Such
rules and regulations shall include provisions describing the applica-
tion process, the due dates for such applications, the standards that
will be used to evaluate the applications, the documentation that will
be provided by applicants to substantiate to the department the amount
of qualified production expenditures of such applicants, and such other
provisions as deemed necessary and appropriate. Notwithstanding any
other provisions to the contrary in the state administrative procedure
act, such rules and regulations may be adopted on an emergency basis. In
no event shall a qualified New York city musical and theatrical
production submit an application for this program after June thirtieth,
two thousand [twenty-five] THIRTY.
§ 7. Subdivision (g) of section 24-c of the tax law, as amended by
section 5-a of subpart E of part I of chapter 59 of the laws of 2023, is
amended to read as follows:
(g) Any qualified New York city musical and theatrical production
company that performs in a level one or level two qualified New York
city production facility and applies to receive a credit under this
section shall be required to: (1) participate in a New York state diver-
sity and arts job training program; (2) create and implement a plan to
ensure that their production is available and accessible for low-or
no-cost to low income New Yorkers; and (3) AFTER THE TAX CREDIT FUNDS
HAVE BEEN RECEIVED BY THE PRODUCTION, contribute to the New York state
council on the arts, cultural program fund an amount up to fifty percent
of the total credits received if its production earns ongoing revenue
prospectively after the end of the credit period that is at least equal
to two hundred percent of its ongoing production costs, with such amount
payable from twenty-five percent of net operating profits, such amounts
payable on a monthly basis, up until such fifty percent of the total
credit amount is reached, PROVIDED THAT FOR PRODUCTIONS LOCATED IN LEVEL
ONE PRODUCTION FACILITIES, UP TO FIVE HUNDRED THOUSAND DOLLARS IN AGGRE-
GATE CONTRIBUTIONS IN THE AMOUNT OF TWENTY-FIVE HUNDRED DOLLARS PER PAID
PERFORMANCE WEEK, PRO-RATED UP OR DOWN IN INCREMENTS OF ONE EIGHTH ON
THE BASIS OF EIGHT PERFORMANCES PER WEEK, SHALL BE PAYABLE PROSPECTIVELY
UPON SUCH PRODUCTION FOR PRODUCTIONS LOCATED IN LEVEL ONE PRODUCTION
FACILITIES HAVING PRESENTED PAID PUBLIC PERFORMANCES FOR A CONSECUTIVE
TWENTY-FOUR MONTH (I.E. ONE HUNDRED FOUR PAID PERFORMANCE WEEKS) PERIOD,
WITH SUCH CONTRIBUTIONS DEEMED A CREDIT AGAINST ANY CONTRIBUTIONS
REQUIRED ON THE BASIS OF NET OPERATING PROFITS IN THIS PARAGRAPH. Any
funds deposited pursuant to this subdivision may be used for arts and
cultural grant programs of the New York state council on the arts as
specified in subdivision five of section ninety-nine-ll of the state
finance law.
§ 8. This act shall take effect immediately and shall apply to taxable
years beginning on or after January 1, 2026; provided, however, that the
amendments to section 24-c of the tax law made by sections two, three,
four, five, six and seven of this act shall not affect the repeal of
such section and shall be deemed repealed therewith.